Environmental Pricing: Lowest Price & The Race to the Bottom
In the Mid-Atlantic area, there are many good, reputable environmental consulting firms that do honest work and put in the effort to solve the complex situations that we’re often presented with…and given the industrial & manufacturing history here (and geology), they can be challenging, but offering the lowest price is a race to the bottom that often leads to disaster and soured client-consultant relationships.
This is very common in public bidding opportunities (e.g. Request for Proposals), and is not limited to environmental consultants. The success rate is generally pretty high when going with a lowest price strategy; although many towns, cities, municipalities have the authority to pass on the lowest bid if they deem a respondent to be more qualified or better suited to achieve the desired results…at an acceptable cost. It also means that they can select the incumbent if the price is right, thus making their selection process that much easier (and truly minimizing the opportunities for other small businesses). Cardinal Environmental covered this topic in our January blog post “Should Small Businesses Pursue Requests for Proposals?,” but the same principles hold true when local businesses are searching for a reputable environmental consultant to help them through a difficult situation, whether it’s due diligence, an Underground Storage Tank (UST) removal, or Licensed Site Remediation Professional (LSRP) services.
Experienced firms typically understand that communicating a realistic, or probable outcome to a prospective client along with estimated, and realistic projected costs increases the trust-factor, and the perceived value you bring to the table. Conversely, there are also many firms (experienced and inexperienced) that will provide a low bid or low cost (with too much fine print in their contracts), simply to secure the work. Unfortunately, a complex Site’s difficulties usually surface over a short time-period leaving the consultant and client scrambling to identify how much more money is needed, how much longer, etc. This tactic ultimately impacts the public perception of the environmental consulting industry, but does that mean you should always throw out the lowest price? Probably not. It means that you should understand the proposed scope of work, prior to signing that contract, which goes back to a familiar theme that we stress at Cardinal Environmental: effective communication. Understand what you’re paying for and what the expectations are!
At Cardinal Environmental, we have the experience to get you through your remedial situation and provide realistic costs up-front, regardless of the size, or scope. Additionally, with over two decades in the industry, we have established relationships in the environmental community to get your project on a cost-effective remedial course that meets your long-term goals. For further information on how we can assist you with environmental solutions and/or LSRP services, please don’t hesitate to contact us at tfrancis@cardinalLSRP.com or www.cardinalLSRP.com.